Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (May 2021)
92 slides from Anz's debt investor presentation, May 2021
Slide 1: 2021 Half Year Results Debt Investor Update
2021 HALF YEAR RESULTS HALF YEAR ENDED 31 MARCH 2021 DEBT INVESTOR UPDATE AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED ABN 11 005 357 522
Slide 2: Contents
CONTENTS 2021 HALF YEAR RESULTS CEO and CFO Results Presentations 2 CEO Presentation 2 CFO Presentation 8 Treasury 17 Additional Information – Group Performance 28 Income 30 Expenses 32 Customer Remediation 34 Investment in Associates 35 Divisional Performance 36 Australia Retail & Commercial 37 Ins
Slide 3: CEO Presentation
2021 HALF YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 4: Financial Overview
FINANCIAL OVERVIEW 1H21 1H21 v 2H20 Statutory Profit ($m) 2,943 +45% Cash Profit (continuing operations)1 ($m) 2,990 +28% Return on Equity (%) 9.7 +206bps Earnings Per Share (cents) 105.3 +27% Cash Profit (continuing operations) ex large / notable items ($m) 3,807 +33% Dividend Per Share (cents) 70
Slide 5: Overview
OVERVIEW CONTINUING OPERATIONS CASH PROFIT CASH EPS ROE APRA LEVEL 2 CET1 RATIO $m cents % % Pro-Forma CET1 ratio 12.5%1 3,564 124.8 12.0 12.4 11.5 11.4 11.3 10.8 2,990 102.7 105.3 2,906 9.8 9.7 2,345 82.8 7.6 1,413 49.9 4.7 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21
Slide 6: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY HELP PEOPLE SAVE FOR, BUY AND OWN A LIVEABLE HOUSE SAVINGS GOALS NEW HOME LOANS ACCOUNTS2 DIGITAL SALES SET A SAVINGS GOAL1 AUSTRALIA AUSTRALIA #000 #000 % of retail sales +31% 42% 40% 429 106 30% +78% 55 327 92 64 64 FY19 FY20 1H21 FY19 FY20 1H21 NEW ZEALAND NEW ZEALAND 1
Slide 7: Track Record of Absolute Cost Reduction
TRACK RECORD OF ABSOLUTE COST REDUCTION EXPENSES (EXCLUDING LARGE / NOTABLE ITEMS) FULL TIME EQUIVALENT STAFF $b 0.7 Divestments 9.3 0.3 -13% 0.4 8.8 50.2 0.4 8.6 43.0 37.5 -0.9 8.0 -1.3 FTE (#000) -0.9 Reduced ‘Run Sep 15 Sep 15 Sep 20 9.0 8.2 the bank’ costs 7.6 7.0 Pro-Forma by ~15% Divestments -
Slide 8: Substantial Accelerated Strategy Initiatives In-Flight
SUBSTANTIAL ACCELERATED STRATEGY INITIATIVES IN-FLIGHT Better customer Better employee Lower Lower absolute Our goal is to drive: operational risk experience experience costs FY23 (EXIT RATE) AMBITION RUN THE BANK PRODUCTIVITY AMBITION (CHANGE FROM FY20) INITIATIVES IN-FLIGHT ~$0.9b ~$0.9b EVOLVING
Slide 9: CFO Presentation
2021 HALF YEAR RESULTS SHANE BUGGLE CHIEF FINANCIAL OFFICER (ACTING)
Slide 10: Financial Performance
FINANCIAL PERFORMANCE CONTINUING OPERATIONS GROUP PROFIT DRIVERS $m 1,552 CONTINUING OPERATIONS 1H21 v 2H20 2,990 Income PBP NPAT -423 Total Group ex Large / Notable -3% -4% 33% Australia Retail & Commercial 2% 5% 72% 2,345 Institutional -18% -29% -25% 243 Institutional (ex Markets) -3% -3% 6% 72 Ne
Slide 11: Net Interest Margin
NET INTEREST MARGIN CONTINUING OPERATIONS GROUP NET INTEREST MARGIN (NIM) bps 4 163 In line with commentary at -1 FY20 & 1Q21 Institutional +3 4 160 Australia R&C -1 157 3 2 -3 Deposit / funding mix +3 -3 Replicating portfolio +1 Asset mix -1 Higher liquid (incl. Home Loan VR to FR -1) assets +3bps
Slide 12: Margin Considerations
MARGIN CONSIDERATIONS FUNDING COMPOSITION LOW RATE DEPOSITS & CAPITAL $b $b ~291 ~234 ~54 ~203 ~163 ~53 ~55 908 ~53 ~237 11 844 ~179 839 ~110 ~150 790 792 9 8 9 10 Sep 19 Mar 20 Sep 20 Mar 21 330 Low rate deposits <25bps 278 274 Capital (ex intangibles) & other non-interest bearing liabilities 288 2
Slide 13: Expenses
EXPENSES CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS EXPENSE DRIVERS BAU costs down -$25m $m 4,288 25 62 28 4,240 1 4,216 550 -48 -110 -30 548 549 3,738 3,692 -1% -2% 3,667 2H20 FX 2H20 FX adj. Inflation Personnel COVID support1 Productivity Other / Investment 1H21 seasonality BAU (run the
Slide 14: Investment Spend
INVESTMENT SPEND CONTINUING OPERATIONS INVESTMENT BY CATEGORY1 EXPENSED & CAPITALISED1 $m $m 832 832 725 769 689 27% 21% 84 769 486 36% 29% 725 64 32% 689 73% 79% 76 64% 71% 68% 78 1H19 2H19 1H20 2H20 1H21 344 Investment Expensed Investment Capitalised 486 385 320 42 295 CAPITALISED SOFTWARE $m 2,89
Slide 15: Provision Charge & Balance
PROVISION CHARGE & BALANCE CONTINUING OPERATIONS TOTAL PROVISION CHARGE COLLECTIVE PROVISION BALANCE MOVEMENT $m Loss rates (%) 1H19 2H19 1H20 2H20 1H21 IP / Avg GLA1 0.12 0.13 0.20 0.12 0.06 2 CP charge / (release) -678 Total charge/(release) / Avg GLA 0.13 0.13 0.53 0.33 -0.16 5,008 -45 $m -199 -1
Slide 16: Provisioning and Risk Migration
PROVISIONING AND RISK MIGRATION COLLECTIVE PROVISION BALANCE IMPACT OF CREDIT PORTFOLIO RISK MIGRATION $m RWA IMPACT ON CAPITAL (CET1) Impact / (benefit) 1.39% 1.25% bps 1.17% 0.98% 0.94% ~15 5,008 10 7 4,501 696 11 4,285 746 3,378 3,376 0 104 -21 1H20 2H20 1H21 2H21 (potential) 4,490 4,312 3,378 3,
Slide 17: Retail & Commercial Credit Quality
RETAIL & COMMERCIAL CREDIT QUALITY LOAN DEFERRALS1 LOANS & ADVANCES PAST DUE2 $b AUS & NZ HOUSING AUS BUSINESS 9.6 9.1 ~121k loans provided with loan ~24k loans provided with loan repayment deferrals repayment deferrals 8.4 5.7 5.2 4% 6% 94% 90% 3.7 3.6 3.8 2% 4% 3.3 3.3 3.0 2.8 2.3 1.7 1.4 1.4 1.4
Slide 18: Treasury
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK TREASURY
Slide 19: Regulatory Capital
REGULATORY CAPITAL CAPITAL UPDATE APRA LEVEL 2 COMMON EQUITY TIER 1 RATIO (CET1) Level 2 CET1 ratio of 12.4% (~12.5% pro forma) and 18.1% on an % Internationally Comparable basis1), which is well in excess of ‘Unquestionably Pro forma CET1 ratio of Strong’ benchmark2 ~12.5% with conversion of Be
Slide 20: Regulatory Capital
REGULATORY CAPITAL APRA LEVEL 1 CET1 RATIO % Level 2: Level 2: 11.34 12.44 APRA LEVEL 2 VS LEVEL 1 CET1 RATIOS Bps 0.28 Level 2 HoH mvmt 110 -0.03 0.18 0.03 12.23 Level 1 HoH mvmt 103 0.05 -0.22 0.08 -0.06 Level 2 vs Level 1 mvmt 7 0.72 Explained by Cash Profit1 8 Total impact of +31bps Other -1 11.
Slide 21: Internationally Comparable Regulatory Capital Position
INTERNATIONALLY COMPARABLE1 REGULATORY CAPITAL POSITION APRA Level 2 CET1 Ratio – 31 March 2021 12.4% Level 2 CET1 Ratio Corporate undrawn EAD Australian ADI unsecured corporate lending LGDs and undrawn % 1.7% 18.1 and unsecured CCFs exceed those applied in many jurisdictions LGD adjustments 16.7 Eq
Slide 22: CET1 and Leverage in a Global Context
CET1 AND LEVERAGE IN A GLOBAL CONTEXT CET1 RATIOS1,2 LEVERAGE RATIOS1,2,3 0% 5% 10% 15% 20% 25% 0% 1% 2% 3% 4% 5% 6% 7% 8% SEB OCBC Svenska Handelsbanken Swedbank UOB Nordea Intesa Sanpaolo CET1 ABN Amro Rabobank Leverage Regulators globally have Danske Bank Erste Bank ANZ compares well on provide
Slide 23: Balance Sheet Structure
BALANCE SHEET STRUCTURE1 BALANCE SHEET COMPOSITION NSFR COMPOSITION Mar-21 Mar-21 $b 548 Wholesale Funding3 & Other4 454 Liquids Short Term Wholesale Debt & Non-Financial Corporates and Other Assets5 Other Funding2 Other Liquid and Other Assets 24% (+1% HoH) Loans6 34% (+1% HoH) Retail/SME Residenti
Slide 24: Liquidity Coverage Ratio (LCR) Summary
LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 LCR COMPOSITION (AVERAGE) MOVEMENT IN AVERAGE LCR SURPLUS3 1H21 $b $b 223 2H20 1H21 Internal RMBS Avg. LCR 139% Avg. LCR 138% Other ALA2 17 HQLA2 1 61 61 -2 -2 -2 -12 162 Wholesale funding HQLA1 Customer deposits & other3 Liquid Assets Net Cash Outflow 2H20 CL
Slide 25: Term Wholesale Funding Portfolio
TERM WHOLESALE FUNDING PORTFOLIO1 ISSUANCE MATURITIES $b 32 30 25 24 22 22 21 19 18 16 8 8 9 4 FY15 FY16 FY17 FY18 FY19 FY20 1H21 2H21 FY22 FY23 FY24 FY25 FY26 FY27+ Senior Unsecured Covered Bonds Tier 2 RMBS TFF PORTFOLIO PORTFOLIO BY CURRENCY 11% 3% • ANZ’s term funding requirements depend Unsecur
Slide 26: ANZ's Tier 2 Capital Profile
ANZ’S TIER 2 CAPITAL PROFILE1 ANZ’S TIER 2 CAPITAL REQUIREMENT TO PROGRESSIVELY TIER 2 CAPITAL INCREASE TO MEET TLAC REQUIREMENT Notional amount • Issued AUD $10.5b since July 2019 across AUD, EUR, and USD By Format By Currency • FY21 T2 issuance expected to be ~$4-5b, ~$4b issued YTD. • Remaining r
Slide 27: Impacts of Rate Movements
IMPACTS OF RATE MOVEMENTS CAPITAL & REPLICATING DEPOSITS PORTFOLIO PORTFOLIO EARNINGS RATE (HISTORICAL) (AUSTRALIA) FY19 Ave: 2.08% % 1H19 Ave: 2.21% 2H19 Ave: 1.95% 2.5 FY20 Ave: 1.40% 1H20 Ave: 1.64% 2H20 Ave: 1.20% FY21 YTD Ave: 0.92% 2.0 1H21 Ave: 0.92% N/A Portfolio Earnings Rate is a combinati
Slide 28: Capital Framework
CAPITAL FRAMEWORK CURRENT REGULATORY PROPOSALS AND RECENT REVISED IMPLEMENTATION DATES1 Implementation FY20 1H21 2H21 FY22 Date RBNZ Capital Framework Transition 2028 Leverage Ratio Consultation Finalise 2023 Standardised Approach to Consultation Finalise 2023 Credit Risk Internal Ratings-based Cons
Slide 29: Additional Information - Group Performance
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK ADDITIONAL INFORMATION - GROUP PERFORMANCE
Slide 30: Total Operating Income
TOTAL OPERATING INCOME TOTAL INCOME BY DIVISION NET INTEREST INCOME BY DIVISION OTHER OPERATING INCOME $b $b $b Continuing Continuing ex L/N Continuing Continuing ex L/N Continuing Continuing ex L/N 9.4 9.3 8.6 9.2 9.1 0.2 0.3 0.3 0.3 8.4 1.7 1.5 1.6 1.5 1.6 7.2 7.2 7.0 1.6 0.1 6.8 7.0 0.1 6.9 0.1 2
Slide 31: Net Interest Margin
NET INTEREST MARGIN GROUP NIM 4 163 bps 4 160 157 3 -1 2 -3 -3 2H20 Rates net headwinds Structural Liquidity -6bps Asset pricing Asset & funding Pricing & Portfolio mix Wholesale Management +9bps funding 1H21 Markets Markets Large Large / / Notable 1H21 of repricing & deposit pricing underlying NIM
Slide 32: Balance Sheet Composition
BALANCE SHEET COMPOSITION CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS EXPOSURE AT DEFAULT1 RISK WEIGHTED ASSETS NET LOANS & ADVANCES CUSTOMER DEPOSITS $b $b (EOP) $b (EOP) $b (EOP) 1,045 408 614 562 2% 0% 1% 6% 16% 20% 17% 13% 24% 40% 43% 42% 56% 40% 43% 38% Mar-21 Mar-21 Mar-21 Mar-21 Aus
Slide 33: Expense Management
EXPENSE MANAGEMENT TOTAL EXPENSES BY DIVISION TOTAL EXPENSES BY CATEGORY FULL TIME EQUIVALENT STAFF $b $b 000s Continuing Continuing ex L/N Continuing Continuing ex L/N Continuing (EOP) 4.8 4.8 37.8 37.5 37.8 4.6 4.6 1.1 1.1 1.1 4.5 4.5 0.6 0.7 4.4 4.3 0.9 4.4 4.3 0.6 4.2 0.8 4.2 0.8 0.5 10.3 10.3 1
Slide 34: Expenses & Investment
EXPENSES & INVESTMENT CONTINUING OPERATIONS EXPENSE DRIVERS1 INVESTMENT SPEND2 $m $m 832 BAU costs down -$25m 769 (after absorbing inflation of $25m) 115 725 4,288 80 4 4,240 1 4,216 689 132 -27 62 -48 -82 95 85 550 548 549 119 87 75 135 -1% 486 116 33 162 140 -2% 77 132 98 3,738 3,692 3,667 78 94 1
Slide 35: Customer Remediation
CUSTOMER REMEDIATION CUSTOMER REMEDIATION CUMULATIVE CUSTOMER REMEDIATION CONTINUING OPERATIONS CONTINUING & DISCONTINUED OPERATIONS PRE TAX $m PRE TAX $m 2,255 485 2,088 1,832 549 1,579 548 546 422 119 928 753 1,706 256 1,540 181 1,157 1,286 153 220 672 352 51 572 29 1H17 2H17 1H18 2H18 1H19 2H19 1
Slide 36: Investments in Associates
INVESTMENTS IN ASSOCIATES P.T. BANK PAN INDONESIA (PT PANIN) AND AMMB HOLDINGS BERHAD (AMBANK) SHARE OF ASSOCIATES’ PROFIT $347m recognised $m as Large / Notable in 1H21 300 241 259 193 183 205 217 216 197 200 145 158 179 157 135 100 22 0 -100 -200 -300 -400 -242 FY09 FY10 FY11 FY12 FY13 FY14 FY15 F
Slide 37: Divisional Performance
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK DIVISIONAL PERFORMANCE
Slide 38: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Balance sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) & NIM NII/OOI2 contribution ($m) Expenses ($m) Total Provision Charge ($m) Cash Profit ($m) 4,683 4,523 4
Slide 39: Australia Retail & Commercial: Loans & Deposits
AUSTRALIA RETAIL & COMMERCIAL RETAIL: LOANS & DEPOSITS LENDING COMPOSITION DEPOSIT COMPOSITION +2% +1% $b $b 288 134 135 279 282 7 117 121 123 274 272 7 19 21 10 14 15 16 9 8 33 36 27 27 28 269 265 275 281 29 26 24 20 31 45 49 53 57 58 264 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Mar-19 Sep-19 Mar-20 Sep-
Slide 40: Australia Retail & Commercial: Home Loans and Credit Cards Trends
AUSTRALIA RETAIL & COMMERCIAL RETAIL: HOME LOANS AND CREDIT CARDS TRENDS HOME LOANS FLOWS HOME LOANS GROWTH2 GROSS LOANS & ADVANCES1 ($b) % 3-MONTH ANNUALISED 13 11 12 15 9 9 6 7 7 7 10 8 4 7 8 7 3 1 5 2 8 8 2 2 6 0 2 8 13 7 -5 8 Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- 8 1 19 19 19 20 20 20 20 21 28
Slide 41: Institutional
INSTITUTIONAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Balance sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) & NIM Product Composition2 ($m) Expenses ($m) Total Provision Charge ($m) Cash Profit ($m) 199 3,057 641 2,790 13 29 2,50
Slide 42: Institutional
INSTITUTIONAL INCOME & ASSET COMPOSITION: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INSTITUTIONAL INCOME COMPOSITION1 NET LOANS & ADVANCES $m $b 199 3,057 165 49 158 13 151 147 26 34 22 32 2,790 28 18 19 14 14 2,657 29 23 2,541 2,507 19 129 111 18 108 111 105 1,508 940 1,164 1H19 2H19 1H
Slide 43: Institutional
INSTITUTIONAL CREDIT RWA: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS CREDIT RWA (AVG)1 CREDIT RWA MOVEMENT – 1H21 (EOP) $b $b 167 159 142 147 4 148 157 135 138 4 2 4 42 4 2 2 41 33 35 35 32 33 17 19 15 -4 18 18 18 19 -5 -1 91 96 104 95 142 82 85 89 -5 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Se
Slide 44: Institutional
INSTITUTIONAL MARKETS INCOME COMPOSITION: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS MARKETS INCOME COMPOSITION – SALES / TRADING VIEW MARKETS INCOME COMPOSITION – BUSINESS VIEW $m $m 1,508 1,508 131 131 1,164 1,164 24 468 1,012 24 468 1,012 884 940 238 21 884 940 238 21 826 826 52 256 52
Slide 45: New Zealand Division
NEW ZEALAND DIVISION FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Balance sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 (NZDb) & NIM NII/OOI2 contribution (NZDm) Expenses (NZDm) Total Provision Charge (NZDm) Cash Profit (NZDm) 131 1,680 1,
Slide 46: Risk Management
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK RISK MANAGEMENT
Slide 47: Risk Management: Long Run Provisions & Loss Rates
RISK MANAGEMENT LONG RUN PROVISIONS & LOSS RATES TOTAL CREDIT IMPAIRMENT CHARGE $m 1,800 1,500 1,200 900 600 300 0 -300 -600 -900 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Consumer IP Commercial IP Instituti
Slide 48: Risk Management: Individual Provision Charge
RISK MANAGEMENT INDIVIDUAL PROVISION CHARGE INDIVIDUAL PROVISION CHARGE INDIVIDUAL PROVISION CHARGE BY DIVISION $m $m 1,047 1,047 82 892 787 892 554 81 626 787 826 435 86 430 343 398 395 626 922 380 339 554 1 969 210 812 187 79 430 807 61 398 612 594 592 500 55 31 272 43 61 343 380 3 395 532 495 376
Slide 49: Risk Management: Collective Provision Balance & Charge
RISK MANAGEMENT COLLECTIVE PROVISION BALANCE & CHARGE COLLECTIVE PROVISION CHARGE MOVEMENT IN COLLECTIVE PROVISION BALANCE – BY DIVISION $m Collective Provision Charge $m 1H19 2H19 1H20 2H20 1H21 5,008 CP charge -45 0 4,285 13 4 1,048 669 -678 -515 -110 -53 Volume/Mix -28 -51 0 46 -199 Change in Ris
Slide 50: Risk Management: Collective Provision Balance
RISK MANAGEMENT COLLECTIVE PROVISION (CP) BALANCE CP BALANCE BY CATEGORY CP BALANCE BY DIVISION $m $b Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 1.39% 1.25% 0.98% 1.17% 0.94% 4,501 5,008 Australia Retail & 696 4,285 Commercial 1.83 1.80 2.32 2.85 2.33 11 3,378 3,376 746 0 104 Institutional 1.13 1.17 1.59 1.
Slide 51: Portfolio Composition and Coverage Ratios
RISK MANAGEMENT PORTFOLIO COMPOSITION AND COVERAGE RATIOS PORTFOLIO COMPOSITION Sovereign Bank Corporate Resi. Mortgage Retail (ex Mortgages) Other Gross loans & advances Credit RWA Exposure at default Exposure at default Expected credit loss (Ex. Sovereign & Bank) (Collective Provision balance) $1,
Slide 52: Expected Credit Loss
EXPECTED CREDIT LOSS ECONOMIC SCENARIOS – MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)1 MARCH 2021 Weightings to scenarios to determine CP balance $m • ANZ’s base case economic forecasts have improved significantly since 5.5% 41.4% 46.7% 6.4% Sep-20 5,508 • Recovery trajectory however
Slide 53: Expected Credit Loss
EXPECTED CREDIT LOSS ECONOMIC SCENARIOS – MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)1 MARCH 2020 SEPTEMBER 2020 MARCH 2021 Weightings to scenarios to determine CP Weightings to scenarios to determine CP Weightings to scenarios to determine CP balance balance balance 12.7% 50.0% 27.3%
Slide 54: Risk Management: Impaired Assets
RISK MANAGEMENT IMPAIRED ASSETS CONTROL LIST NEW IMPAIRED ASSETS BY DIVISION Index Mar-16 = 100 $m 150 2,000 1,784 1,844 1,787 1,570 1,500 1,425 100 1,145 1,117 1,219 1,121 963 890 1,000 50 500 0 0 Mar- Mar- Mar- Mar- Mar- Mar- 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 16 17 18 19 20 21
Slide 55: Risk Weighted Asset and Exposure at Default - Divisional View
RISK MANAGEMENT RISK WEIGHTED ASSET AND EXPOSURE AT DEFAULT – DIVISIONAL VIEW TOTAL RISK WEIGHTED ASSETS CREDIT RWA DRIVERS $b $b 449 429 360.0 417 48 408 396 48 -4.1 47 15 3.5 47 -6.9 341.9 38 22 -3.4 12 -7.2 13 19 178 156 157 Sep-20 FX Volume Risk Model / CVA (incl. Mar-21 144 142 / Mix Method. He
Slide 56: Risk Weighted Assets & Exposure at Default
RISK WEIGHTED ASSETS & EXPOSURE AT DEFAULT EAD COMPOSITION1 EAD COMPOSITION EAD & CRWA MOVEMENT Increased exposure to the RBA via higher ESA (exchange $b $b (Mar-31 movement vs Sep-20) FX adjusted settlement account) balance 31.3 1,075 1% 1,045 5% 1,010 1% 968 977 1% 4% 5% 5% 6.2 4.4 4.6 1% 1% 4% 2.
Slide 57: Total Portfolio Composition
RISK MANAGEMENT TOTAL PORTFOLIO COMPOSITION % of Impaired Assets to Impaired Assets EXPOSURE AT DEFAULT (EAD) DISTRIBUTION Category % of Group EAD EAD Balance3 Mar-202 Sep-202 Mar-21 Mar-202 Sep-202 Mar-21 Mar-21 TOTAL GROUP EAD (Mar-21) Consumer Lending 38.0% 41.3% 41.1% 0.2% 0.2% 0.1% $536m = $1,0
Slide 58: Segments of Interest
RISK MANAGEMENT SEGMENTS OF INTEREST COMMERCIAL PROPERTY OUTSTANDINGS BY REGION COMMERCIAL PROPERTY OUTSTANDINGS BY SECTOR $b • Commercial lending activity was relatively subdued during 2020. Liquidity support was 7.6% provided to a number of strongly rated REITs and Funds, which have been repaid le
Slide 59: Exposure to Industries Impacted by COVID-19 Downgrades
RISK MANAGEMENT EXPOSURE TO SOME INDUSTRIES MORE IMPACTED BY DOWNGRADES DURING THE COVID-19 PANDEMIC1,2,3 TOTAL GROUP EAD RETAIL TRADE ACCOMMODATION, CAFES & RESTAURANTS All exposures on an EAD basis in $b 10.2 9.0 12.7 12.7 12.5 8.1 4% 5% 5% $1,045 (Mar-21) 50% 17% 16% 15% 53% 53% 29% 31% 32% 50% 4
Slide 60: ANZ Institutional Portfolio
RISK MANAGEMENT ANZ INSTITUTIONAL PORTFOLIO INSTITUTIONAL PORTFOLIO SIZE & TENOR BY MARKET ANZ INSTITUTIONAL INDUSTRY COMPOSITION OF INCORPORATION (EAD1) $b EAD (Mar-21): A$448.9b1 Finance 15% Government Administration & Defence 400 28% 3% Property & Business Services 4% Services To Finance & Insura
Slide 61: ANZ Asian Institutional Portfolio
RISK MANAGEMENT ANZ ASIAN INSTITUTIONAL PORTFOLIO (MARKET OF INCORPORATION) MARKET OF INCORPORATION ANZ ASIA INDUSTRY COMPOSITION EAD (Mar-21): A$99b1 EAD (Mar-21): A$99b1 20% Finance 7% 3% Manufacturing 10% China South Korea 3% Wholesale Trade Japan India 4% 3% 6% Services To Finance & Insurance Si
Slide 62: Loan Repayment Deferrals & Delinquencies
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK LOAN REPAYMENT DEFERRALS & DELINQUENCIES
Slide 63: Loan Repayment Deferrals
LOAN REPAYMENT DEFERRALS TREND AND OUTCOME ANALYSIS (31 MARCH)1 AUSTRALIA HOUSING AUSTRALIA BUSINESS2 NEW ZEALAND HOUSING END OF PERIOD #000 END OF PERIOD #000 END OF PERIOD #000 83 74 22 20 23 20 16 3 2 3 2 0 0 0 0 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20
Slide 64: Delinquencies
DELINQUENCIES 90+ DAYS PAST DUE (DPD) CONSUMER PORTFOLIO1,2,3 COMMERCIAL PORTFOLIO4,5 % of Total Portfolio Balances % of Total Portfolio Balances 5.0 5.0 4.5 4.5 4.0 4.0 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- 17 18 19 20 21 1
Slide 65: Housing Portfolio
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK HOUSING PORTFOLIO
Slide 66: Australia Home Loans: Portfolio Overview
AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW (UNLESS OTHERWISE STATED METRICS ARE BASED ON BALANCES) Portfolio1 Flow2 Portfolio1 1H19 1H20 1H21 1H20 1H21 1H19 1H20 1H21 Number of Home Loan 1,000k 971k 1,019k 64k3 92k3 Average LVR at Origination7,8,9 67% 68% 71% accounts1 Total FUM1 $269b $264b $281b $23b
Slide 67: Australia Home Loans: Portfolio Growth
AUSTRALIA HOME LOANS PORTFOLIO GROWTH HOME LOAN FUM COMPOSITION1,2 LOAN BALANCE & LENDING FLOWS1 $b $b 281 14 271 5 19 269 42 9 264 256 8 22 281 7 264 10 6 -58 31 22 43 10 54 17 62 29 57 52 Mar-20 New Sales Net OFI Refi Redraw & Repay / Other Mar-21 38 44 excl. Refi-In Interest 33 MARKET SHARE3 % 15
Slide 68: Australia Home Loans: Portfolio and Flow Composition
AUSTRALIA HOME LOANS PORTFOLIO1,2 & FLOW3,5 COMPOSITION (% of TOTAL BALANCES) BY PURPOSE BY ORIGINATION LVR4,5,6 Portfolio Flow Flow 3% 2% 2% 1% 17% 19% 22% 31% 30% 30% 31% 16% 20% 21% 66% 68% 68% 68% 67% 61% 57% Mar-19 Mar-20 Mar-21 1H21 1H19 1H20 1H21 Owner Occupied Investor Equity Manager <80% LV
Slide 69: Australia Home Loans: Portfolio Dynamics
AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS HOME LOANS REPAYMENT PROFILE1,2 HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE2 72% of accounts ahead of repayments % composition of accounts (Mar-21) 32% 1 0 16 13 26% 28 Active COVID-19 deferrals 25 30 New Accounts: Less than 6 months old 29 Structural: Loans t
Slide 70: Australia Home Loans: Portfolio Dynamics
AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS DYNAMIC LOAN TO VALUE RATIO BASED ON TOTAL PORTFOLIO ACCOUNTS 1,2,3,4,5 >90% % of total Portfolio Accounts Net of offset balances 60 • 5.2% of portfolio 6 50 • 54% ahead of repayments 40 • 49% with LMI 30 NEGATIVE EQUITY 20 Net of offset balances 10 • 1.9% of
Slide 71: Australia Home Loans: Portfolio Performance
AUSTRALIA HOME LOANS PORTFOLIO PERFORMANCE HOME LOANS 90+ DPD BY STATE1,2 HOME LOAN DELINQUENCIES1,2,3,4 % of Portfolio Segment Balances % of Portfolio Segment Balances 2.5 2.5 2.0 1.5 1.0 2.0 0.5 0.0 Mar- Mar- Mar- Mar- Mar- Mar- Mar- 15 16 17 18 19 20 21 1.5 30+ DPD % 90+ Owner Occupied 90+ Invest
Slide 72: New Zealand Home Loans: Portfolio Overview
NEW ZEALAND HOME LOANS PORTFOLIO OVERVIEW1 Portfolio Flow Portfolio 1H19 1H20 1H21 1H20 1H21 1H19 1H20 1H21 Number of Home Loan Accounts 527k 531k 533k 38k 42k Average LVR at Origination 57% 57% 58% Total FUM NZD83b NZD88b NZD95b NZD10b NZD15b Average Dynamic LVR 42% 40% 37% Average Loan Size NZD157
Slide 73: New Zealand Home Loans: Lending & Arrears Trends
NEW ZEALAND HOME LOANS HOME LENDING & ARREARS TRENDS1 ANZ HOME LOAN LVR PROFILE2 HOUSING FLOWS HOUSING PORTFOLIO 1% 16% 14% 11% 2% 2% 1% 5% 3% 41% 43% 45% 7% 12% 86% 89% 14% 84% 15% 59% 57% 55% 19% 1H19 1H20 1H21 Mar-19 Mar-20 Mar-21 18% Proprietary Broker Fixed Variable HOUSING PORTFOLIO BY REGION3
Slide 74: Corporate Overview and ESG
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK CORPORATE OVERVIEW AND ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
Slide 75: Snapshot of Half Year ESG Target Performance
SNAPSHOT OF HALF YEAR ESG TARGET PERFORMANCE OUR ESG TARGETS SUPPORT 10 OF THE 17 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS ESG target Progress Relevant SDGs ENVIRONMENTAL SUSTAINABILITY Fund and facilitate at least $50 billion by 2025 towards sustainable solutions for Funded and facilitated AU$1
Slide 76: Our Approach to Climate Change
OUR APPROACH TO CLIMATE CHANGE WE ARE COMMITTED TO PLAYING OUR PART AND SUPPORTING OUR CUSTOMERS IN THE TRANSITION TO NET-ZERO EMISSIONS BY 2050 • Funding and facilitating at least $50 billion by 2025 to help our customers improve Help our customers environmental sustainability, increase access to a
Slide 77: Sustainable Finance - $50B Target
SUSTAINABLE FINANCE - $50B TARGET SINCE OCTOBER 2019 WE HAVE FUNDED & FACILITATED $13.95 BILLION TOWARDS SUSTAINABLE FINANCE TO HELP OUR CUSTOMERS IMPROVE ENVIRONMENTAL SUSTAINABILITY, INCREASE ACCESS TO AFFORDABLE HOUSING AND PROMOTE FINANCIAL WELLBEING FUNDED $7.94b FACILITATED $6.01b SOCIAL 13% G
Slide 78: Customer Engagement - Financing Sustainability
CUSTOMER ENGAGEMENT – FINANCING SUSTAINABILITY WE ARE FOCUSED ON IDENTIFYING OPPORTUNITIES TO SUPPORT OUR CUSTOMERS’ TRANSITION ACTIVITIES ACROSS THE FOLLOWING PRODUCT AREAS: ‘Green’ and Sustainability Linked Loans: Lending to deploy capital into ‘green’ and sustainability initiatives, where borrowe
Slide 79: How Our Lending Is Supporting the Paris Goals
HOW OUR LENDING IS SUPPORTING THE PARIS GOALS EXPANDING OUR LENDING SUPPORT TO THE RENEWABLE ENERGY SECTOR WHILE REDUCING EXPOSURE TO THERMAL COAL MINING BY ~70% SINCE 2015 RESOURCES PORTFOLIO THERMAL COAL EXPOSURE EXPOSURE AT DEFAULT (EAD) $b EXPOSURE AT DEFAULT (EAD) $b 20.0 2.0 1.7 1.5 0.6 17.3 1
Slide 80: Economics
2021 HALF YEAR RESULTS INVESTOR DISCUSSION PACK ECONOMICS
Slide 81: Economics: Australia Forecast Table
ECONOMICS AUSTRALIA FORECAST TABLE 2018 2019 2020 2021F1 2022F1 Australia – annual % growth GDP 2.8 1.8 -2.5 4.8 3.3 Headline CPI (% y/y) 1.9 1.6 0.8 2.1 1.7 Employment (% y/y) 2.3 2.2 2.7 2.4 1.9 Unemployment (ann. avg) 5.0 5.2 5.3 6.4 5.4 RBA cash rate (% year end) 1.50 0.75 0.10 0.10 0.101 3yr bo
Slide 82: Australian Economy - GDP
AUSTRALIAN ECONOMY- GDP GLOBAL GDP GROWTH COMPARISON*,2 GDP GROWTH1 From Dec-19 to Mar-21 TBU TBU CONSUMER PRICE INFLATION1 AUSTRALIAN GOVERNMENT BUDGET BALANCE1 % of nominal GDP 81 Sources: 1. RBA Chart Pack, May 2021 2. RBA Statement on Monetary Policy, May 2021 Not for distribution into the Unite
Slide 83: Australian Economy - Population and Savings
AUSTRALIAN ECONOMY- POPULATION AND SAVINGS POPULATION GROWTH – AUSTRALIA AND G71 WAGES GROWTH*,2 % yoy 2.5 2.0 1.5 1.0 Australia 0.5 G7 weighted average 0.0 1980 1985 1990 1995 2000 2005 2010 2015 2020 HOUSEHOLD INCOME AND CONSUMPTION*,3 HOUSEHOLD SAVING RATE*,4 Contribution by housing tenure, quart
Slide 84: Australian Economy - COVID-19
AUSTRALIAN ECONOMY – COVID 19 VACCINATIONS*,1 COVID-19 NEW CASES PER CAPITA1 % of population, at least one dose Per 100,000 cases, smoothed ACUTE PHASE DIRECT FISCAL SUPPORT*,1 CONSUMER SENTIMENT*,2 % of 2019 GDP, date of announcement Average since 1980 = 100 83 Sources: 1. RBA Statement on Monetary
Slide 85: Australian Labour Market
AUSTRALIAN LABOUR MARKET UNEMPLOYMENT AND UNDEREMPLOYMENT1 JOB VACANCIES AND ADVERTISEMENTS1 (% of labour force) WAGES GROWTH1 EMPLOYMENT AND HOURS WORKED1,2 Year ended 2008 average=100 84 Sources: 1. RBA Chart Pack May 2021 2. Seasonally adjusted Not for distribution into the United States
Slide 86: Commodity Prices
COMMODITY PRICES RBA INDEX OF COMMODITY PRICES1 RESOURCE EXPORTS*,1 SDR, 2019/20 Average = 100, log scale Log scale, quarterly BULK COMMODITY PRICES2 TERMS OF TRADE*,1 USD, 2015 average =100 2018/19 average = 100, log scale 85 Sources: 1. RBA Chart Pack May 2021, 2. RBA Statement of Monetary Policy,
Slide 87: Australian Housing Dynamics: Low Rates Drive Recent Growth
AUSTRALIAN HOUSING DYNAMICS: LOW RATES DRIVE RECENT GROWTH HOUSING PRICE FORECASTS BY STATE1 HOUSE PRICE GROWTH2 6 Month Change Year on Year Change 5 Year Cumulative Change All All All April 2021 Houses Units Houses Units Houses Units dwellings dwellings dwellings Sydney 10.5 13.4 3.7 7.5 10.4 0.9 2
Slide 88: Australian Housing Dynamics
AUSTRALIAN HOUSING DYNAMICS SHARE OF NEW HOUSING LENDING2 PRIVATE RESIDENTIAL BUILDING APPROVALS1 % Of new monthly housing Monthly First Home Owners’ Boost NSW & Victoria reduce stamp duty MORTGAGE CREDIT3 HOUSING LOAN COMMITMENTS1 Year ended growth (excluding refinancing) 87 Sources: 1. RBA Chart P
Slide 89: Australian Housing: Household Debt and Income
AUSTRALIAN HOUSING HOUSEHOLD DEBT AND INCOME HOUSEHOLD DEBT AND DEPOSITS1 HOUSEHOLD DEBT-TO-INCOME RATIOS2 % of annual household disposable income End 2018 or latest observation FLOWS INTO OFFSET & REDRAW ACCOUNTS4 HOUSING LOAN PREPAYMENTS*,3 % of disposable income Sources: 1. ABS, RBA. Housing Debt
Slide 90: Key Contacts
KEY CONTACTS Key contacts Adrian Went Scott Gifford Mostyn Kau Group Treasurer Head of Debt Investor Relations Head of Group Funding +61 3 8654 5532 +61 3 8655 5683 +61 8655 3860 +61 412 027 151 +61 434 076 876 +61 478 406 607 Adrian.went@anz.com scott.gifford@anz.com Mostyn.kau@anz.com John Needham
Slide 91: Important Notice
IMPORTANT NOTICE Background information only This document has been prepared by Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) (the "Bank") for the information of intended recipients only (being persons who meet the requirements described in the following paragraphs). This docu
Slide 92: Important Notice
IMPORTANT NOTICE United States: This document is only for investors who are (x) outside the United States and are not U.S. Persons (as defined in Regulation S under the Securities Act of 1933 as amended (the “Securities Act”)) in compliance with Regulation S; or (y) “qualified institutional buyers”
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